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© Air Taxi Association, 2008, CONFIDENTIAL Air Taxi Association (ATXA) Image Source: © Respective Companies. As example only. Not for reproduction. Very Light Jets (VLJ) The Next Generation Aircraft That Are Changing Aviation and Flying out of Your Airports by Joe Leader, President 2008 Eastern Region Airport Conference Hershey, Pennsylvania
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© Air Taxi Association, 2008 www.atxa.com Next Generation Air Taxis Not just about the arrival of very light jets Technology advanced, highly efficient aircraft Major advances in business models Highly efficient operations Image Source: © Respective Companies. As example only. Not for reproduction.
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© Air Taxi Association, 2008 www.atxa.com Today’s Presentation Quick introduction Key Definitions Forecasts and Growth Environmental Issues Utilization Rates Next Generation Air Taxi Market Drivers Next Generation Companies Overview Q & A
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© Air Taxi Association, 2008 www.atxa.com Key Definition Next Generation Air Taxi Direct, on-demand air travel at competitively priced levels using technologically advanced aircraft and/or advanced business models to maximize efficiency. Filling the gap between traditional charter, commercial carriers, and driving with a return on time investment. Majority of next generation air taxi passengers today come from the roads and aircraft primarily utilize secondary airports. Image Source: © Popular Science, 2005. As example only. Not for reproduction.
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© Air Taxi Association, 2008 www.atxa.com Key Definitions Very Light Jet Very lights jets are defined as jet aircraft weighing 10,000 pounds of less, certified for single pilot operation, and possessing advanced avionics. VLJs utilize advanced avionics from leading manufacturers allowing aircraft to fly RNP and to be ADS-B ready for more efficient aircraft utilization.
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© Air Taxi Association, 2008 www.atxa.com Very Light Jets Shortest Takeoff / Landing: 3100 ft / 2380 ft Flight Level Max: 25,000 ft – 45,000 ft
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© Air Taxi Association, 2008 www.atxa.com FAA Update for 2008-2025 Updated Estimate on VLJ Fleet Entry The actual number of VLJ deliveries in 2007 fell short of our assumption in last years forecast (143 vs 350). The current forecast assumes that VLJs will continue to enter the active fleet at a rate of 400-500 aircraft a year, reaching 8,124 aircraft by 2025.
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© Air Taxi Association, 2008 www.atxa.com FAA Update for 2008-2025 Selected Quotes on VLJ Growth The relatively inexpensive twin-engine VLJs (priced between $1 and $2 million) are believed by many to have the potential to redefine the business jet segment by expanding business jet flying and offering performance that could support a true on- demand air-taxi business service.
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© Air Taxi Association, 2008 www.atxa.com PMI Media Forecast Very Light Jet Estimates PMI Media For 2007, publisher achieved most accurate forecast for production 18 months in advance 2007-2016 7,659 VLJs Added Worldwide; 5744 U.S. 4,595 Units or 60% Deployed to Existing Air Taxi / Charter Marketplace; 3346 in U.S. U.S. 75% of market, Standing at 75% of current backlog 2008-2016 Source: PMI Media. Please note newest VLJs / PLJs not forecasted.
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© Air Taxi Association, 2008 www.atxa.com United States VLJs Deployed as Air Taxis 2008-2016 Source: PMI Media. Please note newest VLJs / PLJs not forecasted.
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© Air Taxi Association, 2008 www.atxa.com VLJs Deployed as Air Taxis Total Aircraft Growth in U.S. 2008-2016 Source: PMI Media. Please note newest VLJs / PLJs not forecasted.
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© Air Taxi Association, 2008 www.atxa.com FAA Update for 2008-2025 GA Growth with VLJ Introduction “GA instrument operations are projected to grow 2.1% a year...” “GA activity is projected to grow 2.9% a year (almost as much as commercial activity), reflecting the expected impact of VLJs and additional business aviation activity.”
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© Air Taxi Association, 2008 www.atxa.com VLJ Runway Length & Weight Initial aircraft illustrating incredible efficiencies Remarkably short jet takeoff / landing capabilities Opens highly efficient, Stage IV jet aircraft to wider range of secondary airports across America
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© Air Taxi Association, 2008 www.atxa.com VLJs: Greener Aircraft VLJs are built to be GREENER AIRCRAFT with leading fuel efficiency, record low emissions, lowest noise jets, dramatically reduced use of hazardous materials, use of recycled materials, and design for future recyclability. Image & Source: Eclipse Aviation
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© Air Taxi Association, 2008 www.atxa.com Fuel Efficient VLJs Image Source: © Eclipse Aviation, 2007. As example only. Not for reproduction.
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© Air Taxi Association, 2008 www.atxa.com VLJ Emissions Number one selling VLJ has the lowest emissions while other VLJs follow the pattern Lowest carbon dioxide (CO2) emission of any jet aircraft, and most prop-driven aircraft Registered smoke number of less than 1ppm by EPA – lowest smoke emitting jet engine operational today Extremely low mono-nitrogen oxide (NOx) and carbon monoxide (CO) emissions Source: Eclipse Aviation
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© Air Taxi Association, 2008 www.atxa.com VLJ Noise Number one selling VLJ is 30% quieter than Stage IV Two engine jet quieter than: All jets All turbo props Nearly all single engine props Source: Eclipse Aviation
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© Air Taxi Association, 2008 www.atxa.com FAA Update for 2008-2025 VLJ Air Taxi Utilization Rate “VLJ air taxis are expected to average approximately 1,500 hours per year, shared ownership users about 525 and private use 375.”
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© Air Taxi Association, 2008 www.atxa.com Two Factors Driving Air Taxis: 1. The Interstate Highway Challenge For 30 states, road congestion is a serious issue for more than 1/3 of the population. For three states, road congestion is a serious issue for 1/2 of the population. Only seven states are congestion-“free” Imagine & Source: DayJet
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© Air Taxi Association, 2008 www.atxa.com Two Factors Driving Air Taxis: 2. The Hub-and-Spoke Challenge 2015: Planned additional capacity leaves six airports and four metropolitan areas that need additional capacity. 2025: With assumed NextGen concepts, 14 airports and eight metropolitan areas will need additional capacity. This analysis shows why additional solutions including NextGen are so important. Source: FAA: Capacity Needs in the National Airspace System, 2007 and DayJet.
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© Air Taxi Association, 2008 www.atxa.com A Wide Variety of Business Models: Next Generation Air Taxi Operators Air Taxi Operators Air Taxi Marketplaces Future Operators
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© Air Taxi Association, 2008 www.atxa.com Q & A
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© Air Taxi Association, 2008, CONFIDENTIAL Air Taxi Association Image Source: © Respective Companies. As example only. Not for reproduction. Very Light Jets (VLJ) The Next Generation Aircraft That Are Changing Aviation and Flying out of Your Airports
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© Air Taxi Association, 2008 www.atxa.com Contact Information Joe Leader, President joe@atxa.com Air Taxi Association (ATXA) Two Ravinia, Suite 500 Atlanta, GA 30346 678.855.7177
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